Shares of the company, which have risen more than 50 percentsince the beginning of the year, were down 20 percent inpre-market trade. They had closed at $125.77 on Monday on theNasdaq.

The company, which sells jewelry, leather goods, belts,sunglasses and apparel apart from watches, now expects to earn$5.30 to $5.40 per share in the fiscal 2012, down from the $5.40to $5.50 per share it expected earlier.

Analysts on average were estimating earnings of $5.56,according to Thomson Reuters I/B/E/S.

It also forecast second quarter earnings much belowanalysts' estimates.

First-quarter earnings rose to $58.1 million, or 93 centsper share, from $55.2 million, or 86 cents per share, last year.

The company, which sells its namesake brand as well asMichael Kors, Armani Exchange and Marc by Marc Jacobs,said revenue for the quarter rose 9.8 percent to $589.5 million.

Analysts, on average, had expected the company to earn 92cents per share on revenue of $617.6 million, according toThomson Reuters I/B/E/S.